A newly released National Association of Federally-Insured Credit Unions (NAFCU) Macro Data Flash report maintains new home sales increased 1.3 percent in November 2022.
Additionally, the 640,000 annualized units reflected a 15.3 percent reduction from one year ago.
“The market remains challenged by excessively high new construction home prices in conjunction with elevated mortgage rates, which have effectively priced out the average American household,” NAFCU Economist Noah Yosif said.
Per Yosif, November’s sales exceeded expectations while acknowledging market constraints remain – adding the National Association of Home Builders / Wells Fargo Housing Market Index determined builder confidence in the market fell for the 12th consecutive month in December while the S&P CoreLogic Case-Shiller Index showed a decline in home prices nationwide since June.
“These data points suggest the housing market will remain depressed well into 2023, with a long-term rebound substantially determined by the course of inflation and consequent monetary policy,” Yosif said.
According to the report, new home sales in the West and Midwest increased 27.6 percent and 21.3 percent, respectively, while sales decreased in the South and Northeast; the number of unsold homes left on the market increased by 9,000 homes to 461,000; and the median new home price, non-seasonally adjusted, decreased 2.8 percent in November to $471,200.